Data Brokers

Pam Dixon will be speaking at the IAPP-FTC Practical Privacy Conference in Washington DC this week. The conference is from Dec. 2-3. Her panel talk will focus on privacy issues relating to identifiable large datasets and vulnerable populations. She will also be discussing the role of data brokers in compiling datasets and categorizing people, as

The World Privacy Forum filed comments with the U.S. Department of Commerce in response to its Request for Comments about big data, privacy, and the Consumer Privacy Bill of Rights. The White House Big Data report recognized that Big Data “raises considerable questions about how our framework for privacy protection applies in a big data ecosystem” and has the potential to “eclipse longstanding civil rights protections in how personal information is used in housing, credit, employment, health, education, and the marketplace.” This is among our concerns as well, and our comments focused on understanding big data’s benefits while drawing attention to where there are significant privacy risks that need to be addressed.

Forget worrying about loyalty cards or programs: it’s the everyday purchases you make tied to your name with a debit or credit card that can land you on data brokers’ lists. That is one of the many facts that the new FTC report on data brokers sets forth. The report offers a high-level analysis with establishing new fact patterns about the industry based on the Commission’s investigation of nine major data brokers. Overall, we find things to like in the report, but we wish the FTC had gone further in some areas. Here are some of the high points that stood out to us.

Two key recent reports published by the World Privacy Forum, The Scoring of America and Data Brokers and the Federal Government, were cited in the White House’s new report on Big Data. WPF is supportive of the report. “We are pleased that the White House report has correctly recognized critically important issues that impact individuals’ privacy in the area of big data. We commend the report for clearly recognizing that information originally intended for marketing purposes can also be used to impact individuals’ marketplace opportunities in substantive ways that impact peoples’ daily lives, and that creating meaningful protections is important,” said WPF executive director Pam Dixon.

This op ed was originally published Wednesday, March 19 2014 in IAPP for the FTC Alternate Scoring Conference.

In our modern sea of data, the resources to examine all relevant information regarding a decision is no longer feasible, so we use shortcuts. Consumer scores built using predictive analytics and fed by large datasets are the modern-day shortcuts to understanding individual consumer behavior. That’s why new and unregulated consumer scores abound. They are used widely in today’s world to predict consumers’ behavior, spending, health, fraud, profitability, and much more. These scores rely on petabytes of information coming from newly available data streams, and some old ones.

To score is human. Ranking individuals by grades and other performance numbers is as old as human society. Consumer scores — numbers given to individuals to describe or predict their characteristics, habits, or predilections — are a modern day numeric shorthand that ranks, separates, sifts, and otherwise categorizes individuals and also predicts their potential future actions. This new report by Pam Dixon and Robert Gellman explores this issue of predictive scores and privacy.

This Jan. 30, 2014 report discusses a new right to restrict disclosure of health information under the updated HIPAA health privacy rule. The new provision called “Pay Out of Pocket,” also called the “Right to Restrict Disclosure” gives patients the right to request that their health care provider not report or disclose their information to their health plans when they pay for medical services in full. Navigating the new right will take effort and planning for patients to utilize effectively. This substance of this report is about the new patient right to restrict disclosure, and how patients can use it to protect health privacy.

This report focuses on government use of commercial data brokers, the implications for that usage, and what needs to be done to address privacy problems. The government must bring itself fully to heel in the area of privacy. If it is going to outsource its data needs to commercial data brokers, it needs to attach the privacy standards it would have been held to if it had collected the data itself. Outsourcing is not an excuse for evading privacy obligations. Report authors: Bob Gellman and Pam Dixon.